Hyprop and Attacq conclude sale of West African assets
South African property giants, Hyprop Investments and Attacq Limited, have officially announced the conclusion of significant transactions involving the sale of their stakes in a collection of shopping malls located in Nigeria and Ghana. These strategic disposals align with the companies’ renewed focus on consolidating and expanding their investments within the South African market, alongside Hyprop’s continued interest in its Eastern European portfolio.
The divestments encompass the entities’ interests in several key retail properties, marking a notable shift in their investment strategies. In Nigeria, the Ikeja City Mall, a prominent shopping destination in the country, is part of the portfolio being sold. Over in Ghana, the transaction includes the Accra Mall, Kumasi City Mall, and West Hills Mall, all of which are central retail hubs contributing significantly to the local economies.
The sale is structured around two principal agreements. The first transaction sees Attacq’s subsidiary, AIH International (AIHI), alongside Hyprop Mauritius, offloading their stakes in Ikeja City Mall to a new proprietor. AIHI is transferring its 25% interest, while Hyprop Mauritius is selling its 75% share in the entity that owns the mall, known as Gruppo. The consideration for this sale is pegged at $32 million (~R583 million), which will be settled through the issuance of class A shares in Lango Real Estate at $4.19 each, highlighting the buyer’s robust confidence in this investment.
The second deal involves Attacq’s divestment of its 50% interest in AttAfrica, which holds the Ghanaian shopping malls, for a sum of approximately $27.31 million. This amount will also be compensated via the issuance of shares in Lango, further solidifying the relationship between the South African firms and their investment in Lango Real Estate.
Attacq and Hyprop have expressed that these exits from the Sub-Saharan African market are aimed at bolstering their focus on assets within South Africa. For Attacq, this move is also about alleviating the guarantees previously offered to lenders, optimizing their investment portfolio. Hyprop similarly acknowledges these transactions as pivotal to its strategy of refocusing its investment efforts back onto domestic and Eastern European assets.
These transactions are contingent upon receiving green lights from various regulatory bodies, including financial and competition authorities, with an anticipated completion date by the end of the current year.
Following the closure of these deals, Attacq will acquire a minor stake in Lango Real Estate, representing approximately 4.3% of its share capital. This restructuring comes on the back of Attacq’s recent acquisition of the remaining 20% interest in Mall of Africa from Atterbury Property Holdings for R1.07 billion, granting Attacq Waterfall Investment Company full ownership of this landmark retail destination.
Hyprop, on the other hand, continues to hold ownership over prime shopping destinations within South Africa, including but not limited to Rosebank Mall, Hyde Park Corner, and Canal Walk. These strategic divestments and acquisitions underscore both Hyprop’s and Attacq’s commitment to enhancing their portfolio quality and focus on markets where they foresee the most substantial growth potential.
This realignment of investment focus by Attacq and Hyprop highlights the dynamic nature of the global real estate market, where strategic divestments are as crucial as acquisitions in optimizing portfolio performance and shareholder value in the long term.
